GSENetwork "Green-Mining" Digest
GSENetwork is a crypto project aimed to solve the problems in the sharing economy world, starting from high transaction fees and the lack of benefits for all parties in the whole ecosystem. One of their strategies is "green mining", an incentive scheme where participants will get tokens as the reward for doing some specific task/behavior that is defined in the smart contract.
How well will this system work? Let's dig in deeper.
Why It Exist
Before we talk about it further, it's better if we understand what and why does a system is needed in the system. To make it simple, you can think 'green-mining' as a form of getting GSE tokens as a reward for your participation in the network. In this case, participation is equal to transactions and playing your roles. In other words, if you're a buyer/consumer, then you'll get this token when you buy services and then use them in a good manner.
According to their whitepaper, green mining exists as a form of incentives for the participants. You can say that green mining is a form of positive reinforcement to increase participant contribution towards the whole network and to attract others to join the network. This kind of system is not entirely new, but it's probably the first time applied to the sharing economy network because of its complexity. Why are such incentives needed?
Here's some reason that I can think of (some of this is not written on the GSENetwork Whitepaper):
GSENetwork is still new compared to other companies in the sharing economy market. In order to increase their user base, giving incentives to new and or existing participant is important. It's similar or analogous to big discount at a sale from new shops.
As explicitly stated on the white paper, to ensure that all participants get the benefits, thus making GSENetwork has an advantage compared to traditional sharing economy system where incentives are complex to apply and not everyone could get it. Most of the time, only the companies or partners that gain additional benefits, while the participants don't gain any added benefits at all.
Giving free money is the most effective way to make people behave in some way that we want to. We can say that money for people is the same as meat for a dog. We like it too much. That's why giving tokens as the incentives might work.
Will it work?
Another interesting question that we should ask is, will it work? Sure, we like money so much, but does that mean we will do it all the way? Of course not.
Personally, I think it can work, as long as some conditions below are met:
Token price is not so bad, or the payout is pegged to fiat. If the token price is too low, or the payout is not pegged to fiat, then the 'incentives' coming from this process might not worth so much.
The product is working as good as it should. Without a working product, it is impossible to ensure this incentives system will work. You can say that without a good product, any discount that you give for it won't affect your sales at all.
Based on that scenario above, I think "green mining" might be a good strategy for GSENetwork. Applying such incentives to a new and on-going business will increase the rate of participation that is needed for the growth of the network.
For more information visit
Website: https://gse.network/
Whitepaper: https://www.gse.network/static/media/whitepaper.pdf
Telegram: https://t.me/GSENetworkOfficial
Twitter: https://twitter.com/gselabofficial
Facebook: https://www.facebook.com/gsenetworkofficial
Reddit: https://www.reddit.com/r/GSENetwork/
Written By: Em00n01
Bitcointalk Url: https://bitcointalk.org/index.php?action=profile;u=1033334